Denver Housing Market Trends for 2019
January 29, 2019
We don’t need Zillow or Realtor.com to tell us that the Denver-Aurora area is still a hot housing market. Demand continues to outpace supply with a limited number of available homes for sale, even though inventory is expanding – which is good news for home buyers! More houses to buy, means less competition and sometimes even price drops. Still, 2019 will continue to see “used” homes go under contract fairly quickly — unless they are overpriced — and new home builders will continue to close newly constructed homes at a steady pace, as well.
One reason the Denver- Aurora real estate market is still hot is the steady influx of people from other cities and states. USA Today reported last July that the Denver-Aurora-Lakewood area ranked 13th in inbound migration between 2010 and 2017. And last year at about this time, a U-Haul survey ranked Colorado ninth nationally for inbound migration.
So, what does the future hold for aspiring home buyers in the Aurora market?
Predictions and Forecasts
Redfin reported that in the third quarter of 2018, Denver saw more people looking to move out of the city than in. Whether that means a move out of the city or out of the state remains to be seen, but that could be great news for buyers who are staying put. Again, less competition for available homes!
Realtor.com predicts that home sales will likely slow down next year — due in part to rising interest rates. Realtor.com predicts rates could reach 5.5 percent by year-end, sidelining many entry-level buyers and home-seeking households under the age of 34. Rising rates mean higher borrowing costs, but despite the slowdown, home prices could still climb a bit before the end of 2019.
In this YouTube video, chief economist Danielle Hale at Realtor.com says for current homeowners looking to buy UP, the coming slowdown will not affect the home price gains they’ve made in the last few years. Buyers in the “move-up” category who have stored up enough equity will be able to find and buy their next dream home. So, while Realtor.com is calling for a 6.7 percent decline in local home sales in 2019, we might see a median sales price increase of up to 6.8 percent.
Home Prices: Now and Future
According to Zillow, the median home value in Metro Denver-Aurora-Lakewood is $403,800. That represents an increase in home values of 6.4 percent over last year. With home values expected to increase by 6.8 percent, 2019 will continue to present opportunities invest in a home.
The good news in Aurora’s master-planned community of Southshore is the trio of Colorado’s top home builders and the stunning variety of new ranch and two-story homes, priced from the low $400s. Located in a prime residential enclave near the Aurora reservoir and close to mass transportation, shopping and entertainment, Southshore builders offer a number of styles and floor plans for families, empty nesters and singles.
With mortgage rates hovering around 5 percent, still historically low — home buyers who can find a location with the perfect commute, nearby amenities, parks and recreation may find early 2019 the perfect time to invest in a home.
The Time is Right in Southshore
Look at all the options for home buyers in the master-planned community of Southshore! With ranch and two-story floor plans priced from the low $400s, this convenient lakeside community is both remote and close to every possibly amenity. Explore the fantastic model homes from Century Communities, Richmond American Homes and Toll Brothers, priced up to the $700s and designed with contemporary living in mind.